Exit Strategy Consulting Services

Millions of baby boomers have spent the better part of their adult lives building their own small to mid-market businesses. Most of these people will retire within the next 10-15 years, but what will happen to their businesses? Without a well-thought out plan, most of them will simply cease operations, leaving billions of dollars “on the table”. Millions of jobs will also disappear if these companies shut down.

It doesn’t have to be like this. If you are nearing retirement age or want to get out of your business before you reach retirement age, you need to develop an exit strategy. The best time to start planning is NOW.

Taking Stock

The first step in preparing an exit plan is to conduct a careful assessment of your business, your personal financials, and your goals. Most small business owners overestimate the value of their business, and underestimate what they will need after they leave the business. An in-depth business assessment will identify business strengths, weaknesses, opportunities and threats. A review of your personal financials and goals will complete the picture and identify the gap between what you want in the future and what you can reasonably expect based on your current position.

Patience and Planning Pay Off

Once the assessment is complete, the next step is planning. What are your options, and which one is right for you?

Most business owners immediately think of selling their company to an investor or entrepreneur, but this is just one option. In fact, there are many options for exiting a business, including

Sell the business to an investor, business, or family

Private equity group recapitalization

Management Buyout (sell the company to one or more members of the management team)

A sale to an outside party can be very attractive when the economy is doing well, but prices can drop precipitously in economic downturns.

While a conversion to worker owned cooperative is a complete mystery to most attorneys and consultants, it can be an extremely attractive option for a wide range of businesses.

Our Capabilities

We help business owners explore their options, select the best one, and then develop a detailed plan. We then work closely with specialists to help our clients achieve their goals. We also help clients prepare for an exit. This can be a multi-year process, as described in this hypothetical case study.

"There is always a better strategy than the one you have; you just haven’t thought of it yet."

- Brian Pitman, former CEO of Lloyds TSB

"Tactics without strategy is the noise before defeat."

- Sun Tzu

"What’s the use of running if you are not on the right road?"

- German proverb

"Planning is an unnatural process; it is much more fun to do something. The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression."

- Sir John Harvey-Jones

"Change is inevitable, growth is intentional"

- Glenda Cloud

"Chaos in the world brings uneasiness, but it also allows the opportunity for creativity and growth."

- Tom Barrett

"The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dreams."

- W. Arthur Porter

A fool with a plan is better than a genius without a plan."

- T. Boone Pickens (from his father)

"Success is doing a thousand little things the right way … over and over again."

- Charles R. Walgreen Sr.

"The general consensus of the board was we've got nothing to lose by doing a feasibility study. That'll give us data, not just feelings and what-ifs."

- Robert Haskell

"There can be no talk of when until a feasibility study is completed."

- Viktor Khristenko

“You can observe a lot just by watching.”

- Yogi Berra

"Slow and steady wins the race."

- Unknown

"Observe the turtle: He progresses only with his neck out."

- American Indian saying

"Complicare e facile. Semplificare e difficile."

- Bruno Munari

"I have missed more than 9,000 shots in my career. I have lost almost 300 games. On 26 occasions I have been entrusted to take the game winning shot ... and missed. And I have failed over and over and over again in my life. And that is why I succeed."

- Michael Jordan (in a TV commercial for Nike)

"Measure what is measurable, and make measurable what is not so."

- Galileo

"You've got to be careful if you don't know where you're going 'cause you might not get there."

- Yogi Berra

"Every great dream begins with a dreamer. Always remember, you have within you the strength, the patience, and the passion to reach for the stars to change the world."

- Harriet Tubman

"Work like you don't need the money. Love like you've never been hurt. Dance like nobody's watching."

Satchel Paige

When the river rises, the fish eats the ant. When the river falls, the ant eats the fish.